Dynamic pricing decision for a manufacturer-retailer supply chain

Nowadays the corporations must make the proper pricing strategy because of the competition for maximizing their profit. This paper attempts to investigate the optimal dynamic pricing strategy of a manufacturer-retailer supply chain. Some outcomes are obtained based on a stackelberg game model and a cooperative model, such as the manufacturer's optimal strategy is fixed over time horizon on the condition of the stackelberg game while the manufacturer is the leader; and the cumulative sales is a linear function of the time on the condition of the two model etc, these outcomes accord with the reality.